Dell Inc. has been selected by Western Express to provide a cloud-based CRM solution, collaborating applications of salesforce.com (CRM - Free Report) and Dell Boomi. The combined technology from Dell and Salesforce will improve the visibility into its customer needs and better align its sales and operations.
Western Express operates in a highly competitive business environment, so profitability is dependent on the efficient delivery of services to minimize costs without sacrificing the reliability of services. Companies also need to use customer information wisely, which is where the CRM solution from Salesforce and Dell is expected to come in handy.
The ongoing uncertainty in the PC market has led Hewlett-Packard Company (HPQ - Free Report) and Dell to shift their focus to the high-margin enterprise solutions and cloud computing markets.
According to industry experts, customers have withheld PC purchases ahead of the Win 8 launch and hence believe that new launches could charge up the gloomy PC market. However, it will be hard to predict any clear winner as all the key players appear to be playing their cards right.
All this notwithstanding, it is a fact that notebooks are being cannibalized by tablets and while Dell will soon be launching a few Ultrabooks, it does not have a tablet business to speak of. With consumers remaining cautious, sales are likely to remain below typical seasonal levels despite drivers like Win 8 and Ultrabooks.
We therefore have a Zacks #5 Rank on Dell shares, implying Strong Sell rating for the next 1-3 months.